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I'm thinking the law on a library scanning their books and lending the scans is fuzzy at best. Probably even straight-legal in some other countries.
Also, if you (Joe Private Individual) own a physical book you can lend it out as often as you like, just one book can exist at a time. What if scanned e-book lending did the same? Loan as many e-book loaners as they had physical copies before scanning. The standard library e-book (Overdrive) mechanism already works this way, limited simultaneous e-book loans.
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